Crypto sentiment analysis platform Santiment released an analysis report on May 31, stating that the ratio of bullish to bearish comments on Bitcoin has surged to 2.23, setting a new highest record since 2026. Santiment confirmed that the two prior times this year with the highest bullish ratio occurred before short-term pullbacks, and noted that Bitcoin funding rates have been heavily skewed toward longs for the past four days, reaching levels seen before the January crash.
Key warning signals confirmed by Santiment: compounded pressure from long/short ratio and funding rates
Santiment’s report confirmed that the long/short ratio of 2.23 is the highest reading since 2026. This week, the volume of Bitcoin community social media discussions increased by 21% from last week, Ethereum grew by 31%, and XRP mentions nearly doubled. Funding rates have been severely skewed toward longs over the past four days, reaching the highest level since late January before the crash.
Santiment confirmed that combined with the sentiment ratio of 2.23, “the current environment is historically more prone to liquidation cascades.” Regarding ETF fund flows, Santiment confirmed that ETF outflows more often reflect retail investors’ confidence. Historical cycles show that retail’s continuous selling through ETF channels often coincides with phases when long-term holders partially add positions.
Ethereum FUD confirmed data: three key events and inverse signals from holders
Santiment confirmed that Ethereum’s FUD sentiment has fallen to the lowest level since 2023. The triggering factors were three confirmed events: Harvard University fully exited its holdings after buying $87 million worth of an Ethereum ETF for one quarter; researchers at the Ethereum Foundation announced resignations; and David Hoffman publicly said he is stepping away from Ethereum projects.
However, Santiment also confirmed that the number of non-zero Ethereum addresses remains as high as 192.92 million (more than three times the roughly 59 million for Bitcoin), and new wallet creation is maintaining healthy growth. Santiment confirmed that interpreting this FUD trend as a mildly bullish signal is similar to the sharp rebound that appeared after sentiment bottomed out in mid-2023.
Other confirmed indicators: whales’ movements and an MVRV bottom signal
Santiment confirmed that over the past four weeks, major stakeholder wallets holding between 10 and 10,000 BTC saw a net decrease of about 22,823 BTC, while retail investors continued to accumulate; but when extending the timeframe to three months, the same group had net accumulated about 87,436 BTC.
Santiment confirmed that this short-term retail-led divergence historically usually requires whales to reassert dominance before an uptrend driven by sustained accumulation can emerge. The “Modernization of the U.S. Reserve Act” co-proposed by both parties aims to establish a strategic Bitcoin reserve of 1 million BTC locked for 20 years, and Santiment confirmed that this legislative narrative has attracted attention.
Frequently asked questions
What exactly does Santiment’s long/short ratio of 2.23 measure, and why is it considered a warning signal?
Based on Santiment’s confirmation, the long/short ratio of 2.23 means that for every 2.23 bullish comments there is 1 bearish comment, and it is the highest reading since 2026. Santiment confirmed that the two prior times this year with the highest long/short ratio both occurred before short-term pullbacks, and that combined with a situation where funding rates are skewed toward longs, it confirms that the current environment increases the historical probability of liquidation cascades.
Why does Santiment interpret nine consecutive days of BTC ETF outflows as a contrarian bullish signal?
Based on Santiment’s confirmation, ETF fund flows reflect retail investors’ confidence more than anything else. Historical cycles indicate that retail’s continued selling via ETF channels often coincides with phases when long-term holders are partially adding positions, so Santiment interprets this as retail capitulation rather than a confirmation signal of structural bearishness.
What does BTC’s current MVRV value mean?
According to Santiment’s confirmation, BTC’s 30-day MVRV is -2.2%, and its 365-day MVRV is -17.2%, indicating that the average holder is in a losing position. Santiment confirmed that in historical cycles, negative MVRV across multiple time windows typically corresponds to lower-risk accumulation zones, which is favorable for a market environment where patient buying can occur.
